Cover settlement for MTO transfers involves

Here are the answers to your questions, Tadesse:

26. Cover settlement for MTO transfers involves
When a branch pays out an MTO transfer, it creates a claim on the head office or the central MTO unit for reimbursement. This claim is recorded as a receivable for the branch. When the head office settles this claim, it reduces the branch's receivable. Therefore, the settlement involves crediting the branch's receivable account.

The correct option is C.

$$\boxed{\text{Crediting branch receivable account}}$$

27. Which of the following is a key risk in MTO remittance operations?
MTO remittance operations involve moving money, which carries significant risks. Operational risk covers errors, fraud, and system failures. Settlement risk is the